Amended IN Senate March 23, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 639Introduced by Senator HertzbergFebruary 17, 2017 An act to amend Section 8651 721.5 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 639, as amended, Hertzberg. Use fuel taxes. Property taxation: assessment: electric generation facilities.Existing property tax law generally requires a county assessor to assess all property subject to general property taxation at its full value, but requires the State Board of Equalization to annually value and assess all of the taxable property within the state that is to be assessed by it pursuant to the California Constitution, which includes, among other things, property, except franchises, owned or used by companies transmitting or selling electricity and property owned or used by other public utilities, as authorized by the Legislature. Existing property tax law authorizes the board to use the principle of unit valuation in valuing properties of a state assessee that are operated as a unit in a primary function of the assessee, and provides for the allocation of property tax assessed value and revenues from the unitary and operating nonunitary property, as defined, of the state assessee among the various counties in which that property is located.Existing property tax law requires the board to annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined. Existing property tax law provides an exception from this requirement for qualifying small power production facilities and qualifying cogeneration facilities, as defined by reference to specified federal law.This bill would provide an additional exception for a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined by reference to specified federal law, thereby requiring that these facilities be assessed by county assessors. By requiring county assessors to assess certain facilities, this bill would impose a state-mandated local program.Existing property tax law specifies that the above-described provisions relating to assessment of electric generation facilities by the board supersede any contrary regulation in existence as of the effective date of the existing provisions.This bill would delete this specification.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.The Use Fuel Tax Law imposes a state excise tax at specified rates on the use of fuel, which includes any combustible gas or liquid of a kind used in an internal combustion engine for the generation of power to propel a motor vehicle on the highways, other than fuel subject to the Motor Vehicle Tax Law or the Diesel Fuel Tax Law.This bill would make a nonsubstantive change to this provision specifying those rates.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 721.5 of the Revenue and Taxation Code is amended to read:721.5. (a) (1)Notwithstanding Section 721 or any other provision of law to the contrary, commencing with the lien date for the 200304 fiscal year, the board shall annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined in subdivisions (a) and (b) of Section 218 of the Public Utilities Code.(2)(b) For purposes of paragraph (1), subdivision (a), electric generation facility does not include a qualifying small power production facility or a qualifying cogeneration facility within the meaning of Sections 201 and 210 of Title II of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Secs. 796(17), (18) and 824a-3), and the regulations adopted for those sections under that act by the Federal Energy Regulatory Commission (18 C.F.R. 292.101-292.602). 292.101-292.602), or a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined in the federal Public Utility Holding Company Act of 2005 (42 U.S.C. Sec. 16451(6)).(b)This section shall be construed to supersede any regulation, in existence as of the effective date of this section, that is contrary to this section.SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.SECTION 1.Section 8651 of the Revenue and Taxation Code is amended to read:8651.(a)An excise tax is hereby imposed for the use of fuel at the following rate per gallon:(1)Fourteen cents ($0.14) during 1990, on and after August 1.(2)Fifteen cents ($0.15) during 1991.(3)Sixteen cents ($0.16) during 1992.(4)Seventeen cents ($0.17) during 1993.(5)Eighteen cents ($0.18) on and after January 1, 1994.(b)If the federal fuel tax is reduced below the rate of fifteen cents ($0.15) per gallon and federal financial allocations to the state for highway and exclusive public mass transit guideway purposes are reduced or eliminated correspondingly, the tax rate imposed by this section, on and after the date of the reduction, shall be increased by an amount so that the combined state and federal tax rate per gallon equals the following:(1)Twenty-nine cents ($0.29) during 1990, on and after August 1.(2)Thirty cents ($0.30) during 1991.(3)Thirty-one cents ($0.31) during 1992.(4)Thirty-two cents ($0.32) during 1993.(5) Thirty-three cents ($0.33) on and after January 1, 1994.(c)If any person or entity is exempt or partially exempt from the federal fuel tax at the time of a reduction, the person or entity shall continue to be exempt under this section.
Amended IN Senate March 23, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 639Introduced by Senator HertzbergFebruary 17, 2017 An act to amend Section 8651 721.5 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 639, as amended, Hertzberg. Use fuel taxes. Property taxation: assessment: electric generation facilities.Existing property tax law generally requires a county assessor to assess all property subject to general property taxation at its full value, but requires the State Board of Equalization to annually value and assess all of the taxable property within the state that is to be assessed by it pursuant to the California Constitution, which includes, among other things, property, except franchises, owned or used by companies transmitting or selling electricity and property owned or used by other public utilities, as authorized by the Legislature. Existing property tax law authorizes the board to use the principle of unit valuation in valuing properties of a state assessee that are operated as a unit in a primary function of the assessee, and provides for the allocation of property tax assessed value and revenues from the unitary and operating nonunitary property, as defined, of the state assessee among the various counties in which that property is located.Existing property tax law requires the board to annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined. Existing property tax law provides an exception from this requirement for qualifying small power production facilities and qualifying cogeneration facilities, as defined by reference to specified federal law.This bill would provide an additional exception for a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined by reference to specified federal law, thereby requiring that these facilities be assessed by county assessors. By requiring county assessors to assess certain facilities, this bill would impose a state-mandated local program.Existing property tax law specifies that the above-described provisions relating to assessment of electric generation facilities by the board supersede any contrary regulation in existence as of the effective date of the existing provisions.This bill would delete this specification.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.The Use Fuel Tax Law imposes a state excise tax at specified rates on the use of fuel, which includes any combustible gas or liquid of a kind used in an internal combustion engine for the generation of power to propel a motor vehicle on the highways, other than fuel subject to the Motor Vehicle Tax Law or the Diesel Fuel Tax Law.This bill would make a nonsubstantive change to this provision specifying those rates.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES
Amended IN Senate March 23, 2017
Amended IN Senate March 23, 2017
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Senate Bill No. 639
Introduced by Senator HertzbergFebruary 17, 2017
Introduced by Senator Hertzberg
February 17, 2017
An act to amend Section 8651 721.5 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 639, as amended, Hertzberg. Use fuel taxes. Property taxation: assessment: electric generation facilities.
Existing property tax law generally requires a county assessor to assess all property subject to general property taxation at its full value, but requires the State Board of Equalization to annually value and assess all of the taxable property within the state that is to be assessed by it pursuant to the California Constitution, which includes, among other things, property, except franchises, owned or used by companies transmitting or selling electricity and property owned or used by other public utilities, as authorized by the Legislature. Existing property tax law authorizes the board to use the principle of unit valuation in valuing properties of a state assessee that are operated as a unit in a primary function of the assessee, and provides for the allocation of property tax assessed value and revenues from the unitary and operating nonunitary property, as defined, of the state assessee among the various counties in which that property is located.Existing property tax law requires the board to annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined. Existing property tax law provides an exception from this requirement for qualifying small power production facilities and qualifying cogeneration facilities, as defined by reference to specified federal law.This bill would provide an additional exception for a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined by reference to specified federal law, thereby requiring that these facilities be assessed by county assessors. By requiring county assessors to assess certain facilities, this bill would impose a state-mandated local program.Existing property tax law specifies that the above-described provisions relating to assessment of electric generation facilities by the board supersede any contrary regulation in existence as of the effective date of the existing provisions.This bill would delete this specification.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.The Use Fuel Tax Law imposes a state excise tax at specified rates on the use of fuel, which includes any combustible gas or liquid of a kind used in an internal combustion engine for the generation of power to propel a motor vehicle on the highways, other than fuel subject to the Motor Vehicle Tax Law or the Diesel Fuel Tax Law.This bill would make a nonsubstantive change to this provision specifying those rates.
Existing property tax law generally requires a county assessor to assess all property subject to general property taxation at its full value, but requires the State Board of Equalization to annually value and assess all of the taxable property within the state that is to be assessed by it pursuant to the California Constitution, which includes, among other things, property, except franchises, owned or used by companies transmitting or selling electricity and property owned or used by other public utilities, as authorized by the Legislature. Existing property tax law authorizes the board to use the principle of unit valuation in valuing properties of a state assessee that are operated as a unit in a primary function of the assessee, and provides for the allocation of property tax assessed value and revenues from the unitary and operating nonunitary property, as defined, of the state assessee among the various counties in which that property is located.
Existing property tax law requires the board to annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined. Existing property tax law provides an exception from this requirement for qualifying small power production facilities and qualifying cogeneration facilities, as defined by reference to specified federal law.
This bill would provide an additional exception for a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined by reference to specified federal law, thereby requiring that these facilities be assessed by county assessors. By requiring county assessors to assess certain facilities, this bill would impose a state-mandated local program.
Existing property tax law specifies that the above-described provisions relating to assessment of electric generation facilities by the board supersede any contrary regulation in existence as of the effective date of the existing provisions.
This bill would delete this specification.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
The Use Fuel Tax Law imposes a state excise tax at specified rates on the use of fuel, which includes any combustible gas or liquid of a kind used in an internal combustion engine for the generation of power to propel a motor vehicle on the highways, other than fuel subject to the Motor Vehicle Tax Law or the Diesel Fuel Tax Law.
This bill would make a nonsubstantive change to this provision specifying those rates.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 721.5 of the Revenue and Taxation Code is amended to read:721.5. (a) (1)Notwithstanding Section 721 or any other provision of law to the contrary, commencing with the lien date for the 200304 fiscal year, the board shall annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined in subdivisions (a) and (b) of Section 218 of the Public Utilities Code.(2)(b) For purposes of paragraph (1), subdivision (a), electric generation facility does not include a qualifying small power production facility or a qualifying cogeneration facility within the meaning of Sections 201 and 210 of Title II of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Secs. 796(17), (18) and 824a-3), and the regulations adopted for those sections under that act by the Federal Energy Regulatory Commission (18 C.F.R. 292.101-292.602). 292.101-292.602), or a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined in the federal Public Utility Holding Company Act of 2005 (42 U.S.C. Sec. 16451(6)).(b)This section shall be construed to supersede any regulation, in existence as of the effective date of this section, that is contrary to this section.SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.SECTION 1.Section 8651 of the Revenue and Taxation Code is amended to read:8651.(a)An excise tax is hereby imposed for the use of fuel at the following rate per gallon:(1)Fourteen cents ($0.14) during 1990, on and after August 1.(2)Fifteen cents ($0.15) during 1991.(3)Sixteen cents ($0.16) during 1992.(4)Seventeen cents ($0.17) during 1993.(5)Eighteen cents ($0.18) on and after January 1, 1994.(b)If the federal fuel tax is reduced below the rate of fifteen cents ($0.15) per gallon and federal financial allocations to the state for highway and exclusive public mass transit guideway purposes are reduced or eliminated correspondingly, the tax rate imposed by this section, on and after the date of the reduction, shall be increased by an amount so that the combined state and federal tax rate per gallon equals the following:(1)Twenty-nine cents ($0.29) during 1990, on and after August 1.(2)Thirty cents ($0.30) during 1991.(3)Thirty-one cents ($0.31) during 1992.(4)Thirty-two cents ($0.32) during 1993.(5) Thirty-three cents ($0.33) on and after January 1, 1994.(c)If any person or entity is exempt or partially exempt from the federal fuel tax at the time of a reduction, the person or entity shall continue to be exempt under this section.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 721.5 of the Revenue and Taxation Code is amended to read:721.5. (a) (1)Notwithstanding Section 721 or any other provision of law to the contrary, commencing with the lien date for the 200304 fiscal year, the board shall annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined in subdivisions (a) and (b) of Section 218 of the Public Utilities Code.(2)(b) For purposes of paragraph (1), subdivision (a), electric generation facility does not include a qualifying small power production facility or a qualifying cogeneration facility within the meaning of Sections 201 and 210 of Title II of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Secs. 796(17), (18) and 824a-3), and the regulations adopted for those sections under that act by the Federal Energy Regulatory Commission (18 C.F.R. 292.101-292.602). 292.101-292.602), or a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined in the federal Public Utility Holding Company Act of 2005 (42 U.S.C. Sec. 16451(6)).(b)This section shall be construed to supersede any regulation, in existence as of the effective date of this section, that is contrary to this section.
SECTION 1. Section 721.5 of the Revenue and Taxation Code is amended to read:
### SECTION 1.
721.5. (a) (1)Notwithstanding Section 721 or any other provision of law to the contrary, commencing with the lien date for the 200304 fiscal year, the board shall annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined in subdivisions (a) and (b) of Section 218 of the Public Utilities Code.(2)(b) For purposes of paragraph (1), subdivision (a), electric generation facility does not include a qualifying small power production facility or a qualifying cogeneration facility within the meaning of Sections 201 and 210 of Title II of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Secs. 796(17), (18) and 824a-3), and the regulations adopted for those sections under that act by the Federal Energy Regulatory Commission (18 C.F.R. 292.101-292.602). 292.101-292.602), or a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined in the federal Public Utility Holding Company Act of 2005 (42 U.S.C. Sec. 16451(6)).(b)This section shall be construed to supersede any regulation, in existence as of the effective date of this section, that is contrary to this section.
721.5. (a) (1)Notwithstanding Section 721 or any other provision of law to the contrary, commencing with the lien date for the 200304 fiscal year, the board shall annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined in subdivisions (a) and (b) of Section 218 of the Public Utilities Code.(2)(b) For purposes of paragraph (1), subdivision (a), electric generation facility does not include a qualifying small power production facility or a qualifying cogeneration facility within the meaning of Sections 201 and 210 of Title II of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Secs. 796(17), (18) and 824a-3), and the regulations adopted for those sections under that act by the Federal Energy Regulatory Commission (18 C.F.R. 292.101-292.602). 292.101-292.602), or a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined in the federal Public Utility Holding Company Act of 2005 (42 U.S.C. Sec. 16451(6)).(b)This section shall be construed to supersede any regulation, in existence as of the effective date of this section, that is contrary to this section.
721.5. (a) (1)Notwithstanding Section 721 or any other provision of law to the contrary, commencing with the lien date for the 200304 fiscal year, the board shall annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined in subdivisions (a) and (b) of Section 218 of the Public Utilities Code.(2)(b) For purposes of paragraph (1), subdivision (a), electric generation facility does not include a qualifying small power production facility or a qualifying cogeneration facility within the meaning of Sections 201 and 210 of Title II of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Secs. 796(17), (18) and 824a-3), and the regulations adopted for those sections under that act by the Federal Energy Regulatory Commission (18 C.F.R. 292.101-292.602). 292.101-292.602), or a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined in the federal Public Utility Holding Company Act of 2005 (42 U.S.C. Sec. 16451(6)).(b)This section shall be construed to supersede any regulation, in existence as of the effective date of this section, that is contrary to this section.
721.5. (a) (1)Notwithstanding Section 721 or any other provision of law to the contrary, commencing with the lien date for the 200304 fiscal year, the board shall annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined in subdivisions (a) and (b) of Section 218 of the Public Utilities Code.
(2)
(b) For purposes of paragraph (1), subdivision (a), electric generation facility does not include a qualifying small power production facility or a qualifying cogeneration facility within the meaning of Sections 201 and 210 of Title II of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Secs. 796(17), (18) and 824a-3), and the regulations adopted for those sections under that act by the Federal Energy Regulatory Commission (18 C.F.R. 292.101-292.602). 292.101-292.602), or a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined in the federal Public Utility Holding Company Act of 2005 (42 U.S.C. Sec. 16451(6)).
(b)This section shall be construed to supersede any regulation, in existence as of the effective date of this section, that is contrary to this section.
SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
### SEC. 2.
(a)An excise tax is hereby imposed for the use of fuel at the following rate per gallon:
(1)Fourteen cents ($0.14) during 1990, on and after August 1.
(2)Fifteen cents ($0.15) during 1991.
(3)Sixteen cents ($0.16) during 1992.
(4)Seventeen cents ($0.17) during 1993.
(5)Eighteen cents ($0.18) on and after January 1, 1994.
(b)If the federal fuel tax is reduced below the rate of fifteen cents ($0.15) per gallon and federal financial allocations to the state for highway and exclusive public mass transit guideway purposes are reduced or eliminated correspondingly, the tax rate imposed by this section, on and after the date of the reduction, shall be increased by an amount so that the combined state and federal tax rate per gallon equals the following:
(1)Twenty-nine cents ($0.29) during 1990, on and after August 1.
(2)Thirty cents ($0.30) during 1991.
(3)Thirty-one cents ($0.31) during 1992.
(4)Thirty-two cents ($0.32) during 1993.
(5) Thirty-three cents ($0.33) on and after January 1, 1994.
(c)If any person or entity is exempt or partially exempt from the federal fuel tax at the time of a reduction, the person or entity shall continue to be exempt under this section.